Myth: The Auto Industry Can’t Comply with California’s Greenhouse Gas Regulations.
Issue
To fight global warming, California adopted regulations limiting greenhouse gas emissions from cars, SUVs and pick-up trucks. The auto industry has sued in various forums to stop those regulations. When those lawsuits have not succeeded, the auto industry has tried to convince Congress and the Bush Administration to block California’s global warming efforts.
Myth
The auto industry has historically claimed that catastrophe will result if it is forced to comply with public health and safety regulations. Jobs will be lost. Cars will cost too much. Popular vehicles will be withdrawn from the market. The industry will go out of business. Automobile executives have made these arguments before and they are making them now in sworn testimony as the industry battles California’s efforts to combat global warming through greenhouse gas emissions control regulations.
Truth
Over the past 40 years, the domestic automobile industry has opposed just about every public health and welfare regulation, including: seat belts, turn signals, collapsible steering columns, catalytic converters, air bags, and fuel economy standards. When the industry opposed the Clean Air Act of 1970, the American Automobile Manufacturers Association said it would not be possible to achieve the control levels specified in the bill and that manufacturers would have to shut down.
Both General Motors and Ford claimed in the 1970s that if they were forced to introduce catalytic converter systems across-the-board on 1975 models, the result would be “business catastrophe.” Ernest Starkman, GM’s President said “It is conceivable that complete stoppage of the entire production could occur.” Ford testified that if the U.S. Environmental Protection Agency did not suspend the catalytic converter rule, it would cause Ford to shut down.
None of these things happened. Today, both companies are still in business and, not surprisingly, they claim credit for reducing automobile emissions by 96% since the 1960s.
The auto industry demanded a federal court trial on their claims against California’s greenhouse gas regulation, and they got one in Vermont with its identical regulation. After 16-days of trial and an examination of all of their evidence and arguments, the court utterly rejected all of the auto industry’s claims, finding them “unconvincing” “improbable” “highly unlikely” and “not credible.” The court concluded that:
The idea that the regulation will force manufacturers to simply leave the market in some or all vehicle categories in all of the states enforcing the regulation is highly unlikely in light of the evidence presented at trial. It is improbable that an industry that prides itself on its modernity, flexibility and innovativeness will be unable to meet the requirements of the regulation, especially with the range of technological possibilities and alternatives currently before it. Green Mountain Chrysler et al v. Crombie U.S. District Court Vermont, No. 2:05-cv-00302-wks, Sept. 12, 2007 opinion at p. 202 See California’s Motor Vehicle Global Warming Regulations
In fact, in industry show rooms, web pages, advertisements, and elsewhere, the auto industry has consistently claimed the capability to make more “green” vehicles than ever.
- General Motors claims on its web site that it has the “most models with 30 MPG highway or higher.” It also claims the electric Chevy Volt is "alive and well."
- Ford Motor Company’s web site announces “It’s easy being green.” Ford states that it has been working on hydrogen fuel cell technology “for more than 10 years and believe[s] fuel cell vehicles could be commercially viable by the middle of the next decade.”
- Chrysler’s web site claims it is now “capable of quickly responding to the needs of customers instead of the demands of stockholders.” It boasts a “concern for the environment” that includes in its lineup electric minivans, flex fuel vehicles, clean diesels, and a new hybrid engine in 2009.
Even though it is now 2007, the industry’s tactics have changed little over the years. Automakers have consistently fought environmental regulation but have always managed to comply with them.
The bottom line: The industry’s gloom and doom predictions have never come true. It was wrong before and its wrong now. In fact, the industry’s own statements belie the arguments that its executives made in court. Instead of fighting with California and the rest of the world, the industry should focus its efforts on complying with California’s greenhouse gas regulations.